The transaction value method
The transaction value method is the most common method used to determine customs value and, in short, means that the customs value is based on the sale price of the goods. Depending on the costs included in the price, costs may need to be added or deducted when calculating the customs value. This method must be used whenever possible.
The transaction value method under Article 70 of the Union Customs Code is the most common method for determining customs value. The method must be used if the conditions for applying it are met.
The method is based on the price of the goods and the costs included in that price.
Depending on the costs included in the price, additions or deductions may need to be made in accordance with Articles 71 and 72 of the Code to arrive at a customs value.
Examples of costs under Article 71 of the Code that must be added if they are not already included in the price:
- Shipping costs to the point of entry to the EU
- Loading, unloading and handling up until the point of entry to the EU
- Equipment costs
- Packing costs
Article 72 of the Code sets out costs that are not to be included in the customs value, even if included in the price, and which you may therefore deduct. Any cost deducted must be distinguishable from other costs. Examples of such costs:
- Shipping costs arising after the point of entry to the EU
- Costs arising from construction work after the import
- Buying commissions
- Customs duty on imports
Conditions for using the transaction value method
The transaction value method must be used provided that the conditions set out in Article 70(3) of the Code are fulfilled. In addition to these conditions, the sale upon which the customs value is based must be a sale between two independent companies or persons.
Because the transaction value method is based on the price paid or payable, the actual cost must also be known at the time the customs value is determined.
In well-founded cases involving the customs value of goods, the time of determination of the customs value may be deferred by using a simplified declaration with an extended time limit for submitting the supplementary declaration. The determination of the customs value can then be deferred until the conditions for determining it under the transaction value method are present.
In certain cases, if a cost is unknown or cannot be quantified at the time the customs value is determined, Swedish Customs may grant an authorisation allowing amounts under Articles 70(2), 71, and 72 of the Code to be determined on the basis of specific criteria. This authorisation allows the transaction value method to be used even if the actual cost covered by the authorisation cannot be measured.
Substantiating the transaction value
The transaction value is substantiated using the commercial invoice for the goods and any documentation of additional costs.
If the final payable amount is known despite an invoice not yet being issued, the transaction value is still used when calculating the customs value. In such cases, the value must be substantiated by other means, for example by referencing another document showing the agreed price.
Calculate in SEK
If the invoice that you intend to use to calculate the customs value is issued in a foreign currency you must recalculate it to SEK. Swedish Customs' exchange rates published in Tulltaxan (Taric) must be applied, based on the exchange rate applicable on the date the customs declaration is accepted by Swedish Customs.
If you and the vendor have agreed to use a flat exchange rate and the vendor applies this rate, you should use this rate.